Applied Materials Stock Volatility
| AMAT Stock | USD 357.21 7.74 2.21% |
Applied Materials continues to exhibit an above-average volatility profile over the designated horizon. Applied Materials posts a Sharpe Ratio (Efficiency) of 0.19, indicating risk-adjusted returns over the last 3 months. There are 29 technical indicators affecting the current volatility pattern.
Sharpe Ratio = 0.1862
| High Returns | Best Equity | |||
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| Average Returns | ||||
| Small Returns | AMAT | |||
| Cash | Small Risk | Average Risk | High Risk | Huge Risk |
| Negative Returns |
Applied Materials's financial profile includes a Market Risk Adjusted Performance of 0.3%, a Risk of 3.21, and a Risk Adjusted Performance of 0.1%. Based on monthly moving average positioning, Applied Materials is operating near 14% of its observed historical performance range. Within a well-diversified portfolio, its contribution would depend on correlation and allocation weight.
Key indicators related to Applied Materials' volatility include:90 Days Market Risk | Chance Of Distress | 90 Days Economic Sensitivity |
Applied Materials Stock volatility depicts how high the prices fluctuate around the mean (or its average) price. In other words, it is a statistical measure of the distribution of Applied daily returns, and it is calculated using variance and standard deviation.
Volatility Strategy
Applied Materials price volatility may influence cost basis positioning and portfolio weighting over time. Price retracements and recoveries can alter allocation balance. Current statistical measures show total volatility near 3.21% with a beta coefficient of 1.96, indicating sensitivity relative to the broader market benchmark. Risk-adjusted efficiency, represented by a Sharpe ratio of 0.19, evaluates return per unit of total risk. An alpha value of 0.69 reflects performance relative to systematic market exposure. Expected return estimates near 0.6% are derived from historical distribution modeling and help frame forward-looking return assumptions within a portfolio context. Valuation adjustments may drive price swings.
Main indicators related to Applied Materials' market risk premium analysis include:
Beta 1.96 | Alpha 0.69 | Risk 3.21 | Sharpe Ratio 0.19 | Expected Return 0.6 |
Moving together with Applied Stock
| 0.87 | ASM | ASM International | PairCorr |
| 0.67 | INTC | Intel Aggressive Push | PairCorr |
| 0.91 | BESI | BE Semiconductor | PairCorr |
| 0.86 | TYGO | Tigo Energy Tech Boost | PairCorr |
| 0.66 | BKRKF | PT Bank Rakyat | PairCorr |
| 0.84 | DTNOY | DNO ASA ADR | PairCorr |
| 0.86 | IRDM | Iridium Communications | PairCorr |
| 0.69 | AVIR | Atea Pharmaceuticals | PairCorr |
| 0.87 | BSM | Black Stone Minerals | PairCorr |
| 0.71 | ISOU | IsoEnergy | PairCorr |
| 0.73 | MRBK | Meridian Bank | PairCorr |
| 0.84 | KO | Coca Cola | PairCorr |
Moving against Applied Stock
| 0.73 | DCGO | DocGo Inc | PairCorr |
| 0.66 | PTAIF | PT Astra International | PairCorr |
| 0.33 | JKS | JinkoSolar Holding | PairCorr |
Sensitivity To Market
Applied Materials beta coefficient measures the volatility of Applied stock relative to the systematic risk of the overall market benchmark. Mathematically, beta represents the slope of the regression line comparing Applied returns against market returns. A beta of 1.96 indicates the degree of sensitivity to market-wide movements. Current total volatility is approximately 3.21%.Applied Materials has shown noticeable price swings over the selected period. Downside deviation is about 3.33% and standard deviation is about 3.15%, which summarize how widely returns have moved. Options markets imply a forward-looking volatility estimate near 79.0%. This suggests the market is pricing in the possibility of wider future price swings compared to recent historical dispersion. Equity volatility can rise when analyst revisions or guidance changes shift expectations quickly.
3 Months Beta |Analyze Applied Materials Demand TrendCheck current 90 days Applied Materials correlation with market (Dow Jones Industrial)Downside Risk
Applied standard deviation measures the daily dispersion of prices over your selected time horizon relative to its mean. A typical volatile entity has a high standard deviation, while the deviation of a stable instrument is usually low.
Standard Deviation | 3.21 |
It is essential to understand the difference between upside risk (as represented by Applied Materials's standard deviation) and the downside risk, which can be measured by semi-deviation or downside deviation of Applied Materials' daily returns or price. Applied Materials's financial profile includes a Downside Deviation of 3.33, a Downside Variance of 11.06, and a Maximum Drawdown of 14.36.
Using Applied Put Option to Manage Risk Based on 2026-06-18 Contracts
Applied Materials's financial profile includes an Option Implied Volatility of 0.79 and an Option Max Pain Price of 340. Put options written on Applied Materials grant holders of the option the right to sell a specified amount of Applied Materials at a specified price within a specified time frame. The put buyer has a limited loss and, while not fully unlimited gains, as the price of Applied Stock cannot fall below.
Applied Materials' PUT expiring on 2026-06-18
Profit |
| Applied Materials Price At Expiration |
Current Applied Materials Insurance Chain
| Delta | Gamma | Open Int | Expiration | Current Spread | Last Price | |||
Put | AMAT260618P00065000 | -0.008077 | 7.4E-5 | 54 | 2026-06-18 | 0.01 - 2.14 | 0.0 | View |
Put | AMAT260618P00070000 | -0.013464 | 1.07E-4 | 10 | 2026-06-18 | 0.0 - 2.14 | 0.0 | View |
Put | AMAT260618P00075000 | -0.014223 | 1.17E-4 | 15 | 2026-06-18 | 0.0 - 2.15 | 0.0 | View |
Put | AMAT260618P00080000 | -0.014125 | 1.23E-4 | 31 | 2026-06-18 | 0.0 - 1.97 | 0.0 | View |
Put | AMAT260618P00085000 | -0.005689 | 7.2E-5 | 38 | 2026-06-18 | 0.01 - 1.0 | 0.0 | View |
Put | AMAT260618P00090000 | -0.016557 | 1.5E-4 | 273 | 2026-06-18 | 0.0 - 2.18 | 0.0 | View |
Put | AMAT260618P00095000 | -0.008256 | 1.02E-4 | 492 | 2026-06-18 | 0.02 - 1.47 | 0.0 | View |
Put | AMAT260618P00100000 | -0.018285 | 1.76E-4 | 256 | 2026-06-18 | 0.0 - 2.22 | 0.0 | View |
Put | AMAT260618P00105000 | -0.008657 | 1.16E-4 | 253 | 2026-06-18 | 0.01 - 1.41 | 0.0 | View |
Put | AMAT260618P00110000 | -0.007004 | 1.05E-4 | 261 | 2026-06-18 | 0.01 - 1.0 | 0.0 | View |
Put | AMAT260618P00115000 | -0.007284 | 1.13E-4 | 180 | 2026-06-18 | 0.01 - 1.0 | 0.0 | View |
Stock Volatility Analysis
Volatility refers to the frequency at which Applied Materials stock price increases or decreases within a specified period. These fluctuations usually indicate the level of risk that's associated with Applied Materials' price changes.
Transformation |
This analysis covers sixty-one data points across the selected time horizon. Applied Materials Average Price is the average of the sum of open, high, low and close daily prices of a bar. It can be used to smooth an indicator that normally takes just the closing price as input.
Projected Return Density Against Market
Given the investment horizon of 90 days Applied Materials has a beta of 1.9611 . This suggests as the benchmark fluctuates upward, the company is expected to outperform it on average. However, if the benchmark returns are projected to be negative, Applied Materials will likely underperform.Applied Materials is exposed to both systematic and unsystematic risk. Systematic risk reflects broader stock market movements, while company or sector-specific developments represent nonmarket drivers. Diversification may reduce specific risk, but market exposure remains. Beta and standard deviation help quantify volatility. Applied Materials's financial profile includes a Downside Deviation of 3.33, a Mean Deviation of 2.41, and an Option Implied Volatility of 0.79.
Predicted Return Density |
| Returns |
What Drives Applied Materials' Price Volatility?
Several factors can influence Applied Materials' market volatility:Industry Dynamics
Sector-level events can directly affect Applied Materials' price stability. Regulatory changes, supply disruptions, or shifts in demand within Applied Materials' industry may create volatility even when the broader market is calm. Competitive dynamics and industry consolidation can also amplify price swings for companies like Applied Materials.Political and Economic Environment
Macroeconomic conditions and policy decisions shape the backdrop for Applied Materials' price movements. Interest rate changes, trade policy shifts, and fiscal legislation can all alter investor sentiment toward Applied Materials. During periods of economic expansion, Applied Materials' price tends to benefit from broader market optimism, while downturns can amplify selling pressure.Applied Materials' Company-Specific Factors
Volatility can also stem from events unique to Applied Materials. Earnings surprises, management changes, product launches, or legal developments may trigger sharp price reactions in Applied Materials' stock. Conversely, operational setbacks, guidance revisions, or data breaches can weigh on Applied Materials' share price.Stock Risk Measures
Given the investment horizon of 90 days the coefficient of variation of Applied Materials is 537.0. The daily returns are distributed with a variance of 10.3 and standard deviation of 3.21. The mean deviation of Applied Materials is currently at 2.46. For similar time horizon, the selected benchmark (Dow Jones Industrial) has volatility of 0.79
α | Alpha over Dow Jones | 0.69 | |
β | Beta against Dow Jones | 1.96 | |
σ | Overall volatility | 3.21 | |
Ir | Information ratio | 0.19 |
Stock Return Volatility
Applied Materials historical daily return volatility represents how much of Applied Materials stock's daily returns swing around its mean - it is a statistical measure of its dispersion of returns. The firm reported 3.2094% volatility on return distribution over a 90-day investment horizon. By contrast, Dow Jones Industrial has volatility of 0.8201% on return distribution over a 90-day investment horizon. Performance |
| Timeline |
Related Correlations Analysis
Correlation Matchups
Over a given time period, the two securities move together when the Correlation Coefficient is positive. Conversely, the two assets move in opposite directions when the Correlation Coefficient is negative. Determining your positions' relationship to each other is valuable for analyzing and projecting your portfolio's future expected return and risk.High positive correlations
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Risk-Adjusted Indicators
There is a big difference between Applied Stock performing well and Applied Materials Company doing well as a business compared to the competition. There are so many exceptions to the norm that investors cannot definitively determine what's good or bad unless they analyze Applied Materials' multiple risk-adjusted performance indicators across the competitive landscape. These indicators are quantitative in nature and help investors forecast volatility and risk-adjusted expected returns across various positions.| Mean Deviation | Jensen Alpha | Sortino Ratio | Treynor Ratio | Semi Deviation | Expected Shortfall | Potential Upside | Value @Risk | Maximum Drawdown | ||
|---|---|---|---|---|---|---|---|---|---|---|
| LRCX | 2.91 | 0.83 | 0.21 | 0.27 | 3.14 | 6.99 | 17.49 | |||
| QCOM | 1.37 | -0.33 | 0.00 | -0.33 | 0.00 | 1.78 | 11.94 | |||
| KLAC | 2.48 | 0.61 | 0.11 | 0.18 | 3.88 | 6.12 | 22.94 | |||
| TXN | 1.47 | 0.19 | 0.11 | 0.09 | 1.53 | 2.61 | 14.28 | |||
| ARM | 2.13 | 0.18 | 0.04 | 0.01 | 2.47 | 5.14 | 16.74 | |||
| INTC | 3.12 | 0.51 | 0.11 | 0.28 | 3.92 | 7.33 | 28.75 | |||
| INTU | 2.36 | -0.50 | 0.00 | -0.97 | 0.00 | 3.70 | 15.22 | |||
| MU | 3.53 | 1.17 | 0.31 | 0.54 | 2.86 | 9.94 | 20.06 | |||
| NOW | 2.42 | -0.59 | 0.00 | -4.06 | 0.00 | 3.54 | 13.48 | |||
| SONY | 1.16 | -0.43 | 0.00 | 1.81 | 0.00 | 2.10 | 10.40 |
Risk Metrics, Assumptions & Methodology
Volatility for Applied Materials measures return dispersion and uncertainty over time. Higher dispersion implies wider price swings across observed periods. Applied Materials has a market cap of 283.49 B, P/E of 14.73, ROE of 38.86%.
Unless otherwise specified, data for Applied Materials is compiled from periodic company reporting and market reference feeds and standardized for comparability. Updates may occur throughout the day. Volatility and downside metrics are estimated from historical return dispersion.
This content is curated and reviewed by:
Ellen Johnson - Member of Macroaxis Editorial BoardApplied Materials Investment Opportunity
Measured over the selected horizon, Applied Materials carries roughly 3.91 times the return volatility of Dow Jones Industrial. Investors typically want to know whether the additional volatility is buying them more upside or simply more noise.You can use Applied Materials to enhance the returns of your portfolios. This directional read frames the latest price swing through a simple momentum and follow-through lens. It works best as a directional cue rather than as a standalone forecast. an unexpected upward trend. Watch out for market signals. Check odds of Applied Materials to be traded at $428.65 in 90 days.Significant diversification
Across the chosen horizon, AMAT and DJI show a correlation of 0.08 and fall into the Significant diversification bucket. In portfolio terms, the overlap visualization shows how much shared movement remains after both positions are combined.
Applied Materials Additional Risk Indicators
Looking at additional risk metrics for Applied Materials frames how the position may behave under different market and portfolio conditions. Used correctly, these measures can support both standalone risk assessment and portfolio-level hedging decisions.
| Risk Adjusted Performance | 0.1432 | |||
| Market Risk Adjusted Performance | 0.2791 | |||
| Mean Deviation | 2.41 | |||
| Semi Deviation | 2.88 | |||
| Downside Deviation | 3.33 | |||
| Coefficient Of Variation | 585.64 | |||
| Standard Deviation | 3.15 |
Applied Materials Suggested Diversification Pairs
A pair strategy built around Applied Materials is useful when investors want to reduce directional market exposure while still expressing a relative-value idea. The key question is whether the second leg adds real hedge value instead of just creating a more complex version of the same risk.
The effect of pair diversification on risk is to reduce it, but we should note this doesn't apply to all risk types. When we trade pairs against Applied Materials as a counterpart, there is always some inherent risk that will never be diversified away no matter what. This volatility limits the effect of tactical diversification using pair trading. Applied Materials' systematic risk is the inherent uncertainty of the entire market, and therefore cannot be mitigated even by pair-trading it against the equity that is not highly correlated to it. On the other hand, Applied Materials' unsystematic risk describes the types of risk that we can protect against, at least to some degree, by selecting a matching pair that is not perfectly correlated to Applied Materials.
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